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An Introduction to the Chinese Power System and Its Reform

  • Michael G. PollittEmail author
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Abstract

This chapter introduces the Chinese power system and the background to the reform process which began in March 2015 with the publication of the No. 9 document of the China State Council on ‘Deepening Reform of the Power Sector’. Inter alia, this set of reforms seeks to introduce wholesale power markets to trade electricity under longer- and medium-term contracts and via spot markets. It also introduces incentive-based regulation of electricity network tariffs. In doing so it moves the pricing of both wholesale and retail electricity away from a regulated system of tariffs towards market-determined prices for industrial electricity customers. This represents a radical break with the past for China and a significant extension of the role of a market in a sector still dominated by massive state-owned utilities.

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Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Judge Business SchoolUniversity of CambridgeCambridgeUK

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